Silver Price Forecast – Silver Markets Gapped LowerSilver markets gapped lower to kick off the week, but then turned around to fill that gap. We are testing the $18 level, which of course has a lot of psychological significance built into it.
Silver markets gapped lower to kick off the week, but then turned around to fill the gap going forward. At this point, the market is likely to also pay attention to the $18.00 level which of course is a psychological barrier, and then beyond that you have the previous uptrend line that the market has failed at. Because of this, I believe that the silver market is in the process of making a rather important decision. Quite frankly, if we can break above the uptrend line on a daily close, then it would be a very bullish sign for silver.
SILVER Video 31.12.19
On the other hand, it if the market breaks down below the $17.85 level, then it’s possible that the market will go looking towards the 50 day EMA which is closer to the $17.30 level. At that point, there would probably be buyers, and that of course down below at the 200 day EMA which is currently at the $16.68 level. We are essentially “trapped” between these major technical levels, so I think we will continue to consolidate in this general vicinity, especially considering that the end of the year is now upon us, and the volume of course won’t necessarily be strong. With this, we need to see volumes pick up to make a longer-term decision but in the short term we may be able to play a bit of ping-pong between these levels, but overall, it’s very likely that the short-term traders will love this market. With this, be quick to go in and out of positions
Please let us know what you think in the comments below